Charles Blake told Wendy that he was an agent for Easy Pay Life Insura

Charles Blake told Wendy that he was an agent for Easy Pay Life Insurance Company. He presented no credentials.

He asked Wendy some questions about her health and activities, and recorded the answers on scrap paper. He collected a $250 cash premium from Wendy. When Wendy did not receive a policy from Easy Pay, she contacted the company. Easy Pay said they do not have an agent named Charles Blake. Easy Pay is not responsible for Wendy’s loss of $250 because
A) the principal is never responsible for the acts of its agents.
B) there is no presumption of an agency relationship.
C) limitations can be placed on the powers of agents.
D) knowledge of the agent is assumed to be knowledge of the principal.

ANSWER

Answer: B